$725M Refi To 'Simplify Financial Structure'

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WASHINGTON, DC-Capmark Finance Inc. has closed on the initial funding of a $725-million loan portfolio that has been secured for an estimated 21,000-unit portfolio spread across 65 properties in Maryland and Northern Virginia. The sponsor was Southern Management Corp. in Vienna, VA. This portfolio represents the bulk of the privately held firm’s 25,000 unit assets.

Freddie Mac was the lender. The deal, which closed Wednesday, was completed under its Early Rate Lock program, John Reed, a vice president in Capmark’s Richmond office, tells GlobeSt.com. “Just the size of the deal alone makes it a significant transaction. This deal also was the first two-year forward rate lock for Freddie Mac.” Typically the agency has not gone out beyond 12 months, he says. Freddie Mac, in this case, customized the loan because it wanted to win the business.